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Scotts Miracle-Gro

NYSE:SMG
Snowflake Description

Established dividend payer with proven track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SMG
NYSE
$6B
Market Cap
  1. Home
  2. US
  3. Materials
Company description

The Scotts Miracle-Gro Company manufactures, markets, and sells consumer lawn and garden products in the United States and internationally. The last earnings update was 67 days ago. More info.


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SMG Share Price and Events
7 Day Returns
-0.8%
NYSE:SMG
-0.6%
US Chemicals
0.6%
US Market
1 Year Returns
17.5%
NYSE:SMG
-10.9%
US Chemicals
4.7%
US Market
SMG Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Scotts Miracle-Gro (SMG) -0.8% 3.6% 22.6% 17.5% 34.3% 81.8%
US Chemicals -0.6% 0.2% -3.9% -10.9% 16% 7.4%
US Market 0.6% 4.2% 2.7% 4.7% 38% 43.5%
1 Year Return vs Industry and Market
  • SMG outperformed the Chemicals industry which returned -10.9% over the past year.
  • SMG outperformed the Market in United States of America which returned 4.7% over the past year.
Price Volatility
SMG
Industry
5yr Volatility vs Market

SMG Value

 Is Scotts Miracle-Gro undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Scotts Miracle-Gro to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Scotts Miracle-Gro.

NYSE:SMG Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 7 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.5%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:SMG
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Chemicals Unlevered Beta Simply Wall St/ S&P Global 0.89
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.89 (1 + (1- 21%) (43.33%))
1.13
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.13
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.13 * 5.96%)
9.47%

Discounted Cash Flow Calculation for NYSE:SMG using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Scotts Miracle-Gro is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:SMG DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.47%)
2020 328.50 Analyst x2 300.09
2021 272.00 Analyst x1 226.99
2022 273.29 Est @ 0.48% 208.35
2023 276.44 Est @ 1.15% 192.52
2024 280.93 Est @ 1.63% 178.73
2025 286.43 Est @ 1.96% 166.47
2026 292.70 Est @ 2.19% 155.40
2027 299.58 Est @ 2.35% 145.30
2028 306.97 Est @ 2.46% 136.01
2029 314.78 Est @ 2.54% 127.41
Present value of next 10 years cash flows $1,837.29
NYSE:SMG DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $314.78 × (1 + 2.73%) ÷ (9.47% – 2.73%)
$4,800.49
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $4,800.49 ÷ (1 + 9.47%)10
$1,943.06
NYSE:SMG Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $1,837.29 + $1,943.06
$3,780.35
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $3,780.35 / 55.47
$68.15
NYSE:SMG Discount to Share Price
Calculation Result
Value per share (USD) From above. $68.15
Current discount Discount to share price of $99.99
= -1 x ($99.99 - $68.15) / $68.15
-46.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Scotts Miracle-Gro is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Scotts Miracle-Gro's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Scotts Miracle-Gro's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:SMG PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-30) in USD $5.58
NYSE:SMG Share Price ** NYSE (2019-07-12) in USD $99.99
United States of America Chemicals Industry PE Ratio Median Figure of 68 Publicly-Listed Chemicals Companies 18.6x
United States of America Market PE Ratio Median Figure of 3,084 Publicly-Listed Companies 18.01x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Scotts Miracle-Gro.

NYSE:SMG PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:SMG Share Price ÷ EPS (both in USD)

= 99.99 ÷ 5.58

17.9x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Scotts Miracle-Gro is good value based on earnings compared to the US Chemicals industry average.
  • Scotts Miracle-Gro is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Scotts Miracle-Gro's expected growth come at a high price?
Raw Data
NYSE:SMG PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 17.9x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts
-26.2%per year
United States of America Chemicals Industry PEG Ratio Median Figure of 49 Publicly-Listed Chemicals Companies 1.33x
United States of America Market PEG Ratio Median Figure of 2,125 Publicly-Listed Companies 1.59x

*Line of best fit is calculated by linear regression .

NYSE:SMG PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 17.9x ÷ -26.2%

-0.68x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Scotts Miracle-Gro earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Scotts Miracle-Gro's assets?
Raw Data
NYSE:SMG PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-30) in USD $11.14
NYSE:SMG Share Price * NYSE (2019-07-12) in USD $99.99
United States of America Chemicals Industry PB Ratio Median Figure of 93 Publicly-Listed Chemicals Companies 2.1x
United States of America Market PB Ratio Median Figure of 5,239 Publicly-Listed Companies 1.81x
NYSE:SMG PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:SMG Share Price ÷ Book Value per Share (both in USD)

= 99.99 ÷ 11.14

8.98x

* Primary Listing of Scotts Miracle-Gro.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Scotts Miracle-Gro is overvalued based on assets compared to the US Chemicals industry average.
X
Value checks
We assess Scotts Miracle-Gro's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Chemicals industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Chemicals industry average (and greater than 0)? (1 check)
  5. Scotts Miracle-Gro has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

SMG Future Performance

 How is Scotts Miracle-Gro expected to perform in the next 1 to 3 years based on estimates from 7 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-26.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Scotts Miracle-Gro expected to grow at an attractive rate?
  • Scotts Miracle-Gro's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Scotts Miracle-Gro's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.
  • Scotts Miracle-Gro's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:SMG Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:SMG Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts -26.2%
NYSE:SMG Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 7 Analysts 3.2%
United States of America Chemicals Industry Earnings Growth Rate Market Cap Weighted Average 12.4%
United States of America Chemicals Industry Revenue Growth Rate Market Cap Weighted Average 4.9%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.1%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:SMG Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:SMG Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-09-30 3,185 351 1
2020-09-30 3,108 410 269 7
2019-09-30 3,015 361 432 7
NYSE:SMG Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-30 2,917 279 309
2018-12-29 2,740 320 65
2018-09-30 2,663 343 128
2018-06-30 2,606 268 216
2018-03-31 2,585 369 235
2017-12-30 2,656 363 236
2017-09-30 2,642 363 198
2017-07-01 2,338 358 213
2017-04-01 2,359 376 196
2016-12-31 2,519 366 268
2016-09-30 2,506 244 247
2016-07-02 2,809 194 232
2016-04-02 2,926 268 222

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Scotts Miracle-Gro's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Scotts Miracle-Gro's revenue is expected to grow by 3.2% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:SMG Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below

All data from Scotts Miracle-Gro Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:SMG Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-09-30
2020-09-30 4.83 5.34 4.35 3.00
2019-09-30 7.67 7.85 7.44 3.00
NYSE:SMG Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-30 5.58
2018-12-29 1.17
2018-09-30 2.27
2018-06-30 3.79
2018-03-31 4.06
2017-12-30 4.02
2017-09-30 3.33
2017-07-01 3.56
2017-04-01 3.24
2016-12-31 4.41
2016-09-30 4.04
2016-07-02 3.79
2016-04-02 3.61

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Scotts Miracle-Gro is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Scotts Miracle-Gro's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Scotts Miracle-Gro has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

SMG Past Performance

  How has Scotts Miracle-Gro performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Scotts Miracle-Gro's growth in the last year to its industry (Chemicals).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Scotts Miracle-Gro's year on year earnings growth rate has been positive over the past 5 years.
  • Scotts Miracle-Gro's 1-year earnings growth exceeds its 5-year average (31.7% vs 5%)
  • Scotts Miracle-Gro's earnings growth has exceeded the US Chemicals industry average in the past year (31.7% vs 9.2%).
Earnings and Revenue History
Scotts Miracle-Gro's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Scotts Miracle-Gro Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:SMG Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-30 2,916.50 309.40 490.50 42.50
2018-12-29 2,740.00 65.10 475.40 42.30
2018-09-30 2,663.40 127.60 468.70 42.50
2018-06-30 2,606.20 215.90 497.90 22.10
2018-03-31 2,585.00 234.90 480.40 39.90
2017-12-30 2,656.20 236.30 491.40 40.40
2017-09-30 2,642.10 197.80 489.10 39.90
2017-07-01 2,337.80 213.00 488.20 -4.60
2017-04-01 2,358.50 195.60 514.70 -20.90
2016-12-31 2,519.10 267.90 509.10 -2.10
2016-09-30 2,506.20 246.60 468.40 36.00
2016-07-02 2,809.20 232.40 526.80 46.40
2016-04-02 2,926.40 221.70 531.60 45.50
2016-01-02 2,753.00 134.30 520.30 45.80
2015-09-30 2,371.10 129.80 488.80
2015-06-27 2,806.90 165.30 547.10 45.40
2015-03-28 2,812.00 169.50 581.20 46.10
2014-12-27 2,821.20 156.20 603.80 47.00
2014-09-30 2,578.30 145.80 511.60 46.00
2014-06-28 2,820.60 161.40 623.40 34.30
2014-03-29 2,841.30 188.50 664.70 -0.30
2013-12-28 2,768.20 162.00 658.50 0.80
2013-09-30 2,773.70 159.40 605.00 46.40
2013-06-29 2,741.30 142.00 668.60
2013-03-30 2,659.10 90.60 650.70 22.40
2012-12-29 2,821.60 118.00 695.20 10.20
2012-09-30 2,770.50 111.60 703.30

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Whilst Scotts Miracle-Gro made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%), this is metric is skewed due to its high level of debt.
  • Scotts Miracle-Gro used its assets more efficiently than the US Chemicals industry average last year based on Return on Assets.
  • Scotts Miracle-Gro's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Scotts Miracle-Gro's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Chemicals industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Scotts Miracle-Gro has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

SMG Health

 How is Scotts Miracle-Gro's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Scotts Miracle-Gro's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Scotts Miracle-Gro is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Scotts Miracle-Gro's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Scotts Miracle-Gro's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Scotts Miracle-Gro Company Filings, last reported 3 months ago.

NYSE:SMG Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-30 622.10 2,403.10 38.40
2018-12-29 253.20 2,286.00 24.40
2018-09-30 359.60 2,016.40 35.90
2018-06-30 531.30 2,289.90 31.50
2018-03-31 495.90 2,273.50 34.50
2017-12-30 507.80 1,784.10 55.90
2017-09-30 661.70 1,402.30 121.80
2017-07-01 743.00 1,710.40 120.30
2017-04-01 691.40 2,089.80 75.00
2016-12-31 592.20 1,722.80 88.80
2016-09-30 734.30 1,222.30 28.60
2016-07-02 832.20 1,521.50 77.20
2016-04-02 687.90 1,978.60 57.30
2016-01-02 526.70 1,542.30 49.00
2015-09-30 633.10 1,171.00 71.40
2015-06-27 693.40 1,064.30 79.90
2015-03-28 569.90 1,544.10 54.80
2014-12-27 460.90 1,185.30 130.10
2014-09-30 567.20 799.80 89.30
2014-06-28 755.20 846.20 147.20
2014-03-29 675.70 1,443.90 152.70
2013-12-28 621.30 902.40 124.60
2013-09-30 710.50 590.90 129.80
2013-06-29 741.80 728.70 105.40
2013-03-30 606.90 1,396.80 99.10
2012-12-29 513.80 1,015.30 115.60
2012-09-30 601.90 811.40 131.90
  • Scotts Miracle-Gro's level of debt (386.3%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (211.2% vs 386.3% today).
  • Debt is not well covered by operating cash flow (11.6%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 4.4x coverage).
X
Financial health checks
We assess Scotts Miracle-Gro's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Scotts Miracle-Gro has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

SMG Dividends

 What is Scotts Miracle-Gro's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.2%
Current annual income from Scotts Miracle-Gro dividends. Estimated to be 2.28% next year.
If you bought $2,000 of Scotts Miracle-Gro shares you are expected to receive $44 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Scotts Miracle-Gro's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.41%).
  • Scotts Miracle-Gro's dividend is below the markets top 25% of dividend payers in United States of America (3.71%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:SMG Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
United States of America Chemicals Industry Average Dividend Yield Market Cap Weighted Average of 56 Stocks 2.2%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2018 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:SMG Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-09-30 2.32 1.00
2020-09-30 2.34 3.00
2019-09-30 2.20 3.00
NYSE:SMG Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-04-29 2.200 2.363
2019-01-25 2.200 2.773
2018-11-07 2.200 3.211
2018-08-06 2.200 2.942
2018-04-30 2.120 2.555
2018-01-26 2.120 2.410
2017-11-01 2.120 2.068
2017-08-01 2.120 2.194
2017-05-01 2.000 2.231
2017-01-27 2.000 2.152
2016-11-10 2.000 2.155
2016-11-03 2.000 2.272
2016-08-10 2.000 2.395
2016-08-03 2.000 2.481
2016-04-29 1.880 2.681
2016-01-28 1.880 2.685
2015-10-27 1.880 2.838
2015-08-03 1.880 2.974
2015-05-01 1.800 2.934
2015-01-29 1.800 2.723
2014-10-28 1.800 2.933
2014-08-11 1.800 3.170
2014-05-02 1.750 3.048
2014-01-30 1.750 2.964
2013-10-31 1.750 2.906
2013-08-06 1.750 3.178
2013-05-10 1.300 2.664
2013-01-17 1.300 2.909
2012-11-14 1.300 3.033
2012-08-09 1.300 3.035
2012-05-03 1.200 2.874
2012-01-19 1.200 2.383
2011-11-10 1.200 2.678
2011-08-08 1.200 2.612
2011-05-05 1.000 1.906
2011-01-20 1.000 1.804
2010-11-11 1.000 1.969
2010-08-10 1.000 1.970
2010-05-12 0.500 1.096
2010-01-21 0.500 1.158
2009-11-13 0.500 1.250
2009-08-06 0.500 1.196
2009-05-07 0.500 1.393
2009-01-22 0.500 1.541
2008-11-07 0.500 1.720
2008-08-07 0.500 2.025

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Scotts Miracle-Gro's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.6x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.2x coverage).
X
Income/ dividend checks
We assess Scotts Miracle-Gro's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Scotts Miracle-Gro afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Scotts Miracle-Gro has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

SMG Management

 What is the CEO of Scotts Miracle-Gro's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Jim Hagedorn
COMPENSATION $5,156,569
AGE 64
TENURE AS CEO 18.2 years
CEO Bio

Mr. James S. Hagedorn, also known as Jim, has been the Chief Executive Officer since May 2001 and has been the Chairman since January 2003 and has been its Executive Director at The Scotts Miracle-Gro Company (“Scotts Miracle”) since 1995. Mr. Hagedorn served as President at The Scotts Miracle from October 2015 to February 2016, from November 2006 until October 2008 and from April 2000 until December 2005. He served as the President of Scotts-Sierra Horticultural Products Company. He served as the Chief Executive Officer of Scotts Company (which was merged into The Scotts Company LLC in March 2005) since May 2001. He served as the President at The Scotts Miracle from November 2006 to October 1, 2008 and also from April 2000 to December 1, 2005. He served as the President and Chief Operating Officer of Scotts Company from April 2000 to May 2001 and as the President of Scotts North America, of Scotts Company from December 1998 to April 2000. Mr. Hagedorn was named Senior Vice President of Consumer Gardens Group in 1995, the year Scotts merged with Stern's Miracle-Gro Products, Inc. He served as the Executive Vice President of U.S. Business Groups at Scotts Company from October 1996 to December 1998. At Miracle-Gro, Mr. Hagedorn served as Executive Vice President and was a Major Architect of Miracle’s success both in the U.S. and in the UK. He was instrumental in the effective integration of the two businesses and served as Head of its North America business. He serves as the Chairman of the board for the Farms for City Kids Foundation, Inc. in Reading, Vt. Mr. Hagedorn also served as co-chairman of the National Fund for the U.S. Botanic Garden in Washington, D.C. He served as Chairman of Scotts Company since January 30, 2003 and served as its Executive Director since 1995. He serves as a Director for Farms For City Kids Foundation, Inc., Nurse Family Partnership, The CDC Foundation, Embry Riddle/ Aeronautical University, Northshore University Hospital (New York), Scotts Miracle Foundation and the Intrepid Sea-Air-Space Museum, all charitable organizations. He serves as a Member of the board of trustees at Embry Riddle Aeronautical University. In addition, he is Associate Trustee of the North Shore Hospital in Manhasset, N.Y.; Board Member for the Centers for Disease Control and Trustee at the Intrepid Foundation. He served in the United States Air Force for seven years, where he was a captain and an accomplished F-16 fighter pilot. Mr. Hagedorn is a graduate of The Harvard Business School Advanced Management Program and holds a degree in aeronautical science from Embry Riddle Aeronautical University.

CEO Compensation
  • Jim's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Jim's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Scotts Miracle-Gro management team in years:

7.2
Average Tenure
61
Average Age
  • The average tenure for the Scotts Miracle-Gro management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Jim Hagedorn

TITLE
Chairman & CEO
COMPENSATION
$5M
AGE
64
TENURE
18.2 yrs

Mike Lukemire

TITLE
President & COO
COMPENSATION
$2M
AGE
61
TENURE
3.4 yrs

Randy Coleman

TITLE
Executive VP & CFO
COMPENSATION
$2M
AGE
50
TENURE
5.3 yrs

Ivan Smith

TITLE
Executive VP
COMPENSATION
$1M
AGE
50
TENURE
6 yrs

Denise Stump

TITLE
Executive VP of Global HR & Chief Ethics Officer
COMPENSATION
$1M
AGE
65
TENURE
16.4 yrs

Jim King

TITLE
Chief Communications Officer and Senior VP of Investor Relations & Corporate Affairs

Dave Swihart

TITLE
Senior Vice President of Research & Development
TENURE
11.1 yrs

Phil Jones

TITLE
Senior Vice President of International Sales
TENURE
4.5 yrs

Scott Hendrick

TITLE
Senior Vice President of Global Supply Chain
TENURE
8.4 yrs

Mike Hoover

TITLE
Senior Vice President of Special Operating Forces
Board of Directors Tenure

Average tenure and age of the Scotts Miracle-Gro board of directors in years:

8.7
Average Tenure
66.5
Average Age
  • The tenure for the Scotts Miracle-Gro board of directors is about average.
Board of Directors

Jim Hagedorn

TITLE
Chairman & CEO
COMPENSATION
$5M
AGE
64
TENURE
16.5 yrs

Katherine Littlefield

TITLE
Vice-Chairman
COMPENSATION
$285K
AGE
64

Tom Kelly

TITLE
Independent Director
COMPENSATION
$285K
AGE
71
TENURE
12.9 yrs

Nancy Mistretta

TITLE
Independent Director
COMPENSATION
$285K
AGE
65
TENURE
11.9 yrs

Steve Johnson

TITLE
Independent Director
COMPENSATION
$285K
AGE
68
TENURE
8.7 yrs

Peter Shumlin

TITLE
Independent Director
COMPENSATION
$285K
AGE
63
TENURE
2.5 yrs

John Vines

TITLE
Lead Independent Director
COMPENSATION
$335K
AGE
70
TENURE
5.5 yrs

Dave Evans

TITLE
Independent Director
COMPENSATION
$165K
AGE
56
TENURE
1.3 yrs

Adam Hanft

TITLE
Director
COMPENSATION
$285K
AGE
69
TENURE
9.5 yrs

Jim McCann

TITLE
Independent Director
COMPENSATION
$285K
AGE
68
TENURE
5.5 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
06. Feb 19 Sell Katherine Littlefield Individual 04. Feb 19 04. Feb 19 -2,665 $74.07 $-197,397
16. Jan 19 Sell Hagedorn Partnership LP Company 14. Jan 19 14. Jan 19 -50,000 $68.50 $-3,413,477
18. Sep 18 Sell Nancy Mistretta Individual 14. Sep 18 14. Sep 18 -6,300 $76.93 $-484,672
X
Management checks
We assess Scotts Miracle-Gro's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Scotts Miracle-Gro has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

SMG News

Simply Wall St News

Scotts Miracle-Gro (NYSE:SMG) Has A Pretty Healthy Balance Sheet

The first step when considering a company's debt levels is to consider its cash and debt together. … Over the most recent three years, Scotts Miracle-Gro recorded free cash flow worth 72% of its EBIT, which is around normal, given free cash flow excludes interest and tax. … Our View On our analysis Scotts Miracle-Gro's conversion of EBIT to free cash flow should signal that it won't have too much trouble with its debt.

Simply Wall St -

Does The Scotts Miracle-Gro Company's (NYSE:SMG) CEO Pay Reflect Performance?

Check out our latest analysis for Scotts Miracle-Gro How Does Jim Hagedorn's Compensation Compare With Similar Sized Companies? … At the time of writing our data says that The Scotts Miracle-Gro Company has a market cap of US$5.4b, and is paying total annual CEO compensation of US$5.2m. … Over the last three years The Scotts Miracle-Gro Company has shrunk its earnings per share by an average of 5.0% per year (measured with a line of best fit).

Simply Wall St -

Does The Scotts Miracle-Gro Company's (NYSE:SMG) CEO Pay Matter?

Check out our latest analysis for Scotts Miracle-Gro How Does Jim Hagedorn's Compensation Compare With Similar Sized Companies? … According to our data, The Scotts Miracle-Gro Company has a market capitalization of US$5.4b, and pays its CEO total annual compensation worth US$5.2m. … Boasting a total shareholder return of 57% over three years, The Scotts Miracle-Gro Company has done well by shareholders.

Simply Wall St -

Scotts Miracle-Gro (NYSE:SMG) Shareholders Have Enjoyed A 65% Share Price Gain

To wit, the Scotts Miracle-Gro share price has climbed 65% in five years, easily topping the market return of 39% (ignoring dividends). … We note that for Scotts Miracle-Gro the TSR over the last 5 years was 94%, which is better than the share price return mentioned above. … A Different Perspective We're pleased to report that Scotts Miracle-Gro shareholders have received a total shareholder return of 11% over one year.

Simply Wall St -

Shareholders Are Loving The Scotts Miracle-Gro Company's (NYSE:SMG) 2.5% Yield

Is The Scotts Miracle-Gro Company (NYSE:SMG) a good dividend stock? … For the purpose of this article, we only scrutinise the last decade of Scotts Miracle-Gro's dividend payments. … Dividend Growth Potential While dividend payments have been relatively reliable, it would also be nice if earnings per share (EPS) were growing, as this is essential to maintaining the dividend's purchasing power over the long term. It's good to see Scotts Miracle-Gro has been growing its earnings per share at 17% a year over the past 5 years. Earnings per share have been growing at a good rate, and the company is paying less than half its earnings as dividends. We generally think this is an attractive combination, as it permits further reinvestment in the business. Conclusion Dividend investors should always want to know if a) a company's dividends are affordable, b) if there is a track record of consistent payments, and c) if the dividend is capable of growing.

Simply Wall St -

Are The Scotts Miracle-Gro Company’s (NYSE:SMG) High Returns Really That Great?

The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Scotts Miracle-Gro: 0.14 = US$394m ÷ (US$4.0b - US$1.2b) (Based on the trailing twelve months to March 2019.) So, Scotts Miracle-Gro has an ROCE of 14%. … How Scotts Miracle-Gro's Current Liabilities Impact Its ROCE Current liabilities are short term bills and invoices that need to be paid in 12 months or less. … The ROCE equation subtracts current liabilities from capital employed, so a company with a lot of current liabilities appears to have less capital employed, and a higher ROCE than otherwise.

Simply Wall St -

Is The Scotts Miracle-Gro Company's (NYSE:SMG) 50% ROE Better Than Average?

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … Our data shows Scotts Miracle-Gro has a return on equity of 50% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

What Is The Scotts Miracle-Gro Company's (NYSE:SMG) Share Price Doing?

saw a significant share price rise of over 20% in the past couple of months on the NYSE. … With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price? … However, could the stock still be trading at a relatively cheap price.

Simply Wall St -

Should You Be Worried About Insider Transactions At The Scotts Miracle-Gro Company (NYSE:SMG)?

So before you buy or sell The Scotts Miracle-Gro Company (NYSE:SMG), you may well want to know whether insiders have been buying or selling. … The Last 12 Months Of Insider Transactions At Scotts Miracle-Gro. … All up, insiders sold more shares in Scotts Miracle-Gro than they bought, over the last year

Simply Wall St -

Is The Scotts Miracle-Gro Company's (NYSE:SMG) High P/E Ratio A Problem For Investors?

The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). … We'll look at The Scotts Miracle-Gro Company's (NYSE:SMG) P/E ratio and reflect on what it tells us about the company's share price. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

SMG Company Info

Description

The Scotts Miracle-Gro Company manufactures, markets, and sells consumer lawn and garden products in the United States and internationally. The company operates through three segments: U.S. Consumer, Hawthorne, and Other. It offers lawn care products, such as lawn fertilizers, grass seed products, spreaders, other durable products, and outdoor cleaners, as well as lawn-related weed, pest, and disease control products. The company also provides gardening and landscape products, including water-soluble and continuous-release plant foods, potting mixes and garden soils, mulch and decorative groundcover products, plant-related pest and disease control products, organic garden products, and lives goods and seeding solutions. In addition, it offers hydroponic products that help users grow plants, flowers, and vegetables in an indoor or urban environment; and insect control products, rodent control products, and weed control products for home areas. The company offers its products under the Scotts, Turf Builder, EZ Seed, PatchMaster, Thick’R Lawn, GrubEx, EdgeGuard, Handy Green II, Scotts OxiCleanTM3, Miracle-Gro, LiquaFeed, Osmocote, Shake ‘N Feed, Hyponex, Earthgro, SuperSoil, Fafard, Nature Scapes, Ortho, Miracle-Gro Organic Choice, Nature’s Care, Whitney Farms, EcoScraps, Gro-ables, Hydroponics, Gavita, Botanicare, Vermicrop, Agrolux, Can-Filters, Sun System, Gro Pro, Mother Earth, Hurricane, Grower's Edge, AeroGarden, Ortho Weed B Gon, Roundup, and Groundclear brands. It serves home centers, mass merchandisers, warehouse clubs, large hardware chains, independent hardware stores, nurseries, garden centers, e-commerce platforms, food and drug stores, and indoor gardening and hydroponic distributors and retailers through a direct sales force, and network of brokers and distributors. The Scotts Miracle-Gro Company was founded in 1868 and is headquartered in Marysville, Ohio.

Details
Name: The Scotts Miracle-Gro Company
SMG
Exchange: NYSE
Founded: 1868
$5,546,591,785
55,471,465
Website: http://www.scotts.com
Address: The Scotts Miracle-Gro Company
14111 Scottslawn Road,
Marysville,
Ohio, 43041,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE SMG Common Shares New York Stock Exchange US USD 31. Jan 1992
DB SCQA Common Shares Deutsche Boerse AG DE EUR 31. Jan 1992
LSE 0L45 Common Shares London Stock Exchange GB USD 31. Jan 1992
Number of employees
Current staff
Staff numbers
5,150
Scotts Miracle-Gro employees.
Industry
Fertilizers and Agricultural Chemicals
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/14 23:43
End of day share price update: 2019/07/12 00:00
Last estimates confirmation: 2019/07/10
Last earnings filing: 2019/05/08
Last earnings reported: 2019/03/30
Last annual earnings reported: 2018/09/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.